01/07/2019Barnes
Real Estate & Art de Vivre

Vineyards, combining passion and profitability

In terms of investment, wine is one of the rare products that amalgamates pleasure, investment and returns. This combination of factors has led affluent investors to make significant acquisitions in vineyards since the 2000s.

Competition between investors and their fervent bid to get their hands on the most impressive international vineyards has caused the price of vineyards to rocket. One example of this is the acquisition of the Clos de Tart in Burgundy by François Pinault for over 30 million euros per hectare, making this currently the most expensive vineyard in the world.

Several strategies exist for making money out of vineyards, creating a label from scratch, turning an estate around and focusing on capital gains on resale, acquiring vast vineyards and working on sales margins, stratifying a brand from the top down, etc. An entrepreneurial approach often taken by investors who have sold their previous company and wish to get involved in a new activity, whether or not they intend to live or stay at their vineyard estate. These battle-hardy entrepreneurs will need to spend 15 million euros for a Grand Cru spanning 20 hectares and from 35 million euros for a Cru Classé of the same size in the Médoc region. .

“BARNES Vineyards Investment sets itself apart from its competitors by acting as an advisory body for mergers/acquisitions, offering advice from one entrepreneur to another.”

Arnaud Lurton, Managing Partner, BARNES Vineyards Investment